MADISON—Transportation expenditures in Wisconsin rose 34.1% from 1996 to 2001, or an average of 6.0% annually, to $2.16 billion, according to a new report from the Wisconsin Taxpayers Alliance (WISTAX). By contrast, inflation, as measured by the consumer price index, rose 13.3% during this period.

From 1991 to 1996, transportation expenditures increased 6.7% annually, according to WISTAX, a private government-research organization. Total expenditures are projected to increase 5.4% in 2002 to $2.28 billion and 3.7% in 2003 to $2.36 billion.

The state transportation budget includes four major expenditure categories: state highways; local transportation programs; Wisconsin Department of Transportation (WisDOT) operations; and debt service and other expenditures.

In the 2001-03 biennium, $2.24 billion (48.2%) of the $4.64-billion state transportation budget will be spent on state highways, $1.03 billion (22.2%) on local transportation assistance, $615.4 million (13.3%) on local capital assistance, $430.3 million (9.3%) on agency operations, $233.4 million (5.0%) on debt service and $95.4 million (2.1%) on other expenditures, primarily internal operations such as data processing and payments to other state agencies.

In looking more closely at the major components of transportation spending, WISTAX found:

Nearly $1.65 billion in the 2001-03 state transportation budget is allocated to local transportation, WISTAX noted. Funds for local programs involve transportation aids and capital assistance. Aids to local units of government include funds for local road construction and maintenance, bridge improvements, capital assistance for airports, rail and harbor facilities, flood damage, and transit operating assistance.

From 1996 to 2001, transportation revenues from state sources increased 23.4%, or an average of 4.3% annually, reaching $1.28 billion in 2001. They rose 32.7%, or 5.8% annually, from 1991 to 1996.

In 2001-03, federal transportation aids are projected to provide 30.2% ($1.40 billion) of the $4.64 billion in total transportation budget revenues. Approximately 59.3% ($2.75 billion) will come from state sources (primarily motor fuel taxes and registration fees), while 5.9% ($275.1 million) will be from bond funds. The remaining 4.6% ($211.4 million) will be from small program revenues and local payments for individual transportation projects, WISTAX said.

As of April 2002, Wisconsin had the highest state gasoline tax, including environmental fees, among neighboring states, at 31.1 cents per gallon. Other rates, including environmental fees, were: Iowa (21.0 cents per gallon); Illinois (20.1 cents); Michigan (19.9 cents); and Minnesota (22.0 cents).

In November 1999, WisDOT adopted a comprehensive, long-term state highway plan, which called for spending $20.4 billion (in 1999 dollars) through 2020 to maintain and improve the state trunk highway system, WISTAX reported. Under the plan, through 2020, state and federal revenues are expected to generate around $15.3 billion (in 1999 dollars), leaving an estimated $5.1-billion shortfall. The plan included funds for reconstruction of the Marquette Interchange near downtown Milwaukee, which is part of a comprehensive plan to rebuild the southeast Wisconsin freeway system that is expected to cost in total over $5 billion.

In addition, plans are underway for commuter rail projects in southeast Wisconsin and Dane county, and for the Midwest Regional Rail System, a high-speed passenger rail system that would provide city-to-city connections over 3,000 miles of track in nine states, including new passenger rail service from Milwaukee to Madison that could begin as early as 2003.